Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1887-07-14
Democratic Theories in the Way.

traordinary business activity, 1t Is seen
that wild speculation and great fiuctua
tions in prices have been Its most strik
ing features. These are phenomena
that almost invariably attend an iuf1s-
ted condition of the currency. and ac-
fcordingly it appears that the imitation
has been great. A year ago the Treasu.
ry had outstanding SIC, 100000 gold and
SSS, 100000 silver certificates; now it has
outstanding S9l.O0O.OOO gold and S142,.
100000 silver certificates, an increase of
$50 100000 in paper circulation. There
are also outstanding S2,s00O0O more le-
gal tenders than year ago, and the &C
tual circulation of silver dollars has in
creased S3,000,0Oo. In one item there
has been reduction. S29,727,S97 in bank
netes, but the net imports of gold have
been sS5. 100000. and the production of
the mint probably S20,OOO.OOO more than
the consumption in manufactures hile
the Treasury holds of the increased sup
ply S45,OOo.O 900 more than it did year
ago, leaving about SlO,O0o,OO0 more in
circulation.
The distinguishing feature of the situ-
alton Is that this remarkable addition
to the circulation, and especially to the
amount of small notes in use, of which
s27 100000 has been put out already, has
produced extraordinary activity in spec
ulation and wild fluctuations in prices.
The imitation continues to this time
During the past month, the Treasury
has put out S3O0O.O0O silver certificates
more than it has taken in, and 81 1884,
more legal tenders, and $685., 900 more
gold certificates, while rsdeeming ST.
l37, ,423 bank notes. Thus 1t has added
$l,550,000 to the paper circulation, bet
sides the gold coined within about $780,
900 and nearly that amount of silver
has been added to the circulation. Yet
the popularity of speculation In June
has been violent fall in prices of
stocks. wheat. coffee and many other
commodities, with weakness In woollen,
iron and some other manufactures. I'm
ports are surprisingly large and exceed
ed exports by S31.0O0,oOO in April and
May, with probability of seme increase
in June.
In this condition the country has to
confront a shrinkage in circulation.
This may be lessened by devices of the
Treasury. but it will not be possible
long 10 prevent the accumulation in
consequence of the excess of revenues
over authorized expenditures. Within
the past year $75 100000 has been paid
for pensions. but it is now suggested
CHAT sa4,ooo,OO0 can be paid within the
next sixty days. Eight million five hun
dred thousand dollars has been added to
deposits in banks, but It Is suggested
that the amount can be increased; about
$4,000. 900 has been paid out In redemp-
ton of bank notes. but it is reasoned
that more than s2,5OO,OOO per month
may hereafter be redeemed. These and
other expedients. 1t is hoped. may pre-
vent any serious pressure for two or
three months. But that kind of policy
may suit spectators who want time to
sell things; the people who engage in
industrial occupations or contemplate
substantial investments look for some
basis more solid than temporary expedi-
ents that may stave off reaction for
sixty or ninety days.
If the Administration has its way
another tarff agitation will begin next
winter. The one remedy it has to offer
is cutting down duties on manufactured
products-as IL 1t were not obvious that
any moderate reduction of duties would
tend to swell importations, which are
already too large. The agitation must
in any case disturb i'm portant industries,
as every such struggle has disturbed
them since the Democratic party had
the power to threaten free trade revor
luton. The volume of business is large,
and productive industries are expanding
rapidly, but over them all hangs the un-
certainty which an attempt to realize in
government the theories of the Demo-
cratic party always produces.-N. Y.
Tribune.